L
one Star Funds, a private equity firm based in Dallas with offices in major cities worldwide including New York, London, Beijing, and Tokyo, has announced the final close of its latest commercial real estate fund, Lone Star Real Estate Fund VII, L.P. (LSREF VII). The fund has a total capital of approximately $2.7 billion at its disposal.

    According to CEO Donald Quintin, LSREF VII will focus on opportunistic and value-add commercial real estate investments such as direct commercial real estate equity, debt portfolios, and commercial real estate-related operating companies. The fund anticipates deep-value and special situation investment opportunities across Europe, North America, and Japan due to the ongoing complex and changing real estate landscape.

    Lone Star has been investing in the broader commercial real estate sector for nearly three decades and believes that the current environment plays to their strengths as a disciplined and flexible opportunistic investor. The firm appreciates the continued support of its longstanding partners who have supported them during their most recent fundraise.

    Since its inception in 1995, Lone Star has organized 25 private equity funds with aggregate capital commitments totaling approximately $95 billion. The predecessor to LSREF VII, the even larger Lone Star Real Estate Fund VI, L.P., had its final closing in June 2019 with aggregate capital commitments of approximately $4.6 billion.

    In June of this year, Lone Star held the final closing for Lone Star Fund XII, L.P., the latest in the firm’s Opportunity Fund series, with aggregate capital commitments of around $5.3 billion.

    In May, Lone Star acquired Netherlands-based ERIKS N.V., a specialized pan-European industrial components distributor and engineering service provider. The terms of the deal were not disclosed. According to CEO Donald Quintin, ERIKS represents an exciting investment opportunity and a valuable addition to their European investment portfolio. This acquisition aligns with their strategy of investing in market-leading businesses that exhibit both growth and operating improvement potential. They are excited to work alongside the ERIKS team to further scale the business and accelerate the delivery of innovative solutions to their customers.